Canadian Prime Minister Mark Carney announced a new strategy on February 5, 2026, to protect the domestic automotive sector. The government is now inviting industry stakeholders, including manufacturers and unions, to provide feedback by April 13 on potential changes to the automotive remission framework.

These adjustments seek to better align trade policy with local production and workforce goals. Currently, firms manufacturing in Canada can import US-made vehicles tariff-free within specific quotas if they meet investment targets.

Since April 2025, Canadian-made vehicles have faced a 25% US tariff on non-US content.

François-Philippe Champagne, Minister of Finance and National Revenue, said that these measures are to maintain competitiveness for the automotive sector, supporting more than 500,000 workers and CA$16 billion in annual GDP.